J Stock Report Newsletter for the week of August 4th, 2007
New stock additions:
1. CRNT 2000 shares @ 13.57 (purchased on 8/1/2007)
The Skinny:
Nice trend on the daily chart since May, great business (Ceragon is the leading company to provide microwave PTP back-hauling technology) and dip in the market looks like a good buying opportunity. We are using a danger range of -8% thru -10% for a potential stop loss area in our model portfolio.
2. WMGI 1000 shares @ 24.90 (purchased on 8/1/2007)
The Skinny:
Wright Medical Group deals in reconstructive joint devices and biologics products. They recently had good earnings and upped guidance giving it a reason to shatter the problematic resistance in the high $25 range that it has been held captive by. Aside from that, ISRG has people looking for the next 'big thing' in medical device makers of any sort; this should help bring this stock more attention. This stock has had a solid support around $24, if this breaks to the downside on heavy volume it would essentially shatter the theory of a breakout that we are looking for.
3. SVR 1000 shares @ 14.85 (purchased on 8/1/2007)
The Skinny:
We liked the earnings report, especially the cash flow and raising of full year guidance. The stock had been in consolidation for months so it is primed for another move. We are buying a gap up so we are giving this a bit of extra slack should it attempt to fill the gap on the downside. A convincing break of the 200 day moving average around 13.05 on big volume would be problematic and would most likely trigger a sell for our portfolio unless there were special circumstances (i.e. the NYSE down over 500).
Old Position Action:
NONE
Sells This Week:
NONE
Some things we are watching for potential entries:
SXE, ELP, FTWR, SYNA, CCC